LIC investments under survey before the proposed IPO
Generally, in the next month-and-a-half, LIC could witness pouring investments. So then, it could meet its billions of dollars of investment target. Yet, this time around, investments might go under a closer survey because of the IPO proposed.
Besides, equity investments of LIC have touched 54.5% of a target of Rs 86,000 crores for this fiscal. Also, when the valuation process starts for the IPO, all the aspects would come under scrutiny. However, since LIC has seen short-term concerns about losses in equity books, so then, these might also come under a closer watch. Also, it includes sectoral investment caps, the financial position of the investee firms, as well as the amount of profit LIC would gather.
Despite this, the final valuation of LIC might value at Rs 10 lakh crores depending on the kind of investment. Also, bad loans came up high in number for LIC. So then, LIC’s gross non-performing asset ratio remained at 6.10% for H1FY20.
Besides, in early 2020, LIC has a concern about losing almost Rs 22,400 crores in the June quarter itself. Yet, over the last three years, it has witnessed an almost 63% surge in the value of equity holdings. Also, the value has increased by Rs 74,781 crores in FY19.
However, coming to targets for equity profits, LIC has secured 94% of its Rs 24,700 crores FY20 target. Besides, government securities investment reached Rs 2.81 lakh crores. So then, this stood more than the set target of Rs 2.55 lakh crores.